Welcome to our live coverage of the June jobs report. We're joined here by Reuters Lena Masri.

U.S. job growth slowed in June and Americans left the labor force in droves, according to a government report on Thursday that could tamper expectations for a September interest rate hike from the Federal Reserve.

Nonfarm payrolls increased 223,000 last month, the Labor Department said. Adding to the report's soft note, April and May data was revised to show 60,000 fewer jobs were added than previously reported.

With 432,000 people dropping out of the labor force, the unemployment rate fell two-tenths of a percentage point to 5.3 percent, the lowest since April 2008.

The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, fell to 62.6 percent, the weakest since October 1977. The participation rate had touched a four month high of 62.9 percent in May.

In addition, average hourly earnings were unchanged, taking the year-on-year increase to a tepid 2.0 percent.

Wall Street was set to open higher on Thursday after data showed labor market weakened in June, indicating that the U.S. Federal Reserve could hold off on raising interest rates in September.

Nonfarm payrolls increased 223,000 last month, below the 230,000 that economists polled by Reuters had expected.

Average hourly earnings were unchanged, taking the year-on-year increase to a tepid 2.0 percent.

"It is a slightly disappointing payroll number. If anything, it buys the Fed a little more time before the first rate hike," said Wilmer Stith, a fixed income portfolio manager at Wilmington Trust in Baltimore.

"It puts September a little more in question," Stith added.

The jobs report was being closely watched for indications of a rebound in the economy from a first-quarter slump.

The Fed has said that it will raise rates only if it sees signs of a sustained recovery in the economy.

by cassandra.garrison7/2/2015 1:26:14 PM

Oil rises after weaker-than-expected U.S. jobs data hits dollar

Oil prices edged higher on Thursday as the U.S. dollar slipped following weaker-than-expected U.S. non-farm payrolls data.

Poll indications that Greek citizens were expected to back a cash-for-reforms deal in a referendum on Sunday added to the bullish momentum, traders said.

Traders were also keeping a close eye on nuclear talks between Western powers and Iran, looking for any sign of a deal to lift sanctions on the oil-rich nation.

Brent futures were trading 60 cents higher at $62.61 per barrel at 1247 GMT. Front-month U.S. crude futures were up 18 cents at $57.14 per barrel.

The payrolls data weighed on the U.S. currency, which in turn lent support to dollar-priced oil. The figures showed U.S. job growth slowed in June and Americans left the labour force in droves.

Oil prices had slumped between 2.5 and 4 percent on Wednesday after a surprise weekly rise in U.S. crude inventories, the first build since April. [EIA/S]

The stock increase came on the back of strong U.S. production.

"Overall, production was supported by increased output from the Gulf of Mexico," Barclays said in a note following the publication of the inventories data.

Canada's main stock index futures extended gains on Thursday after data showed U.S. jobs growth slowed in June, tempering expectations of a rate hike by the Federal Reserve in September.

September futures on the S&P TSX index were up 0.4 percent at 8:30 a.m. ET.

Canada's main stock index regained some ground on Tuesday after Monday's precipitous drop, with energy shares leading broad gains as crude bounced off three-week lows.

Dow Jones Industrial Average e-mini futures were up 0.14 percent and Nasdaq 100 e-mini futures were up 0.16 percent. were up 0.15 percent at 8:30 a.m. ET, while S&P 500 e-mini futures RBC Manufacturing PMI data for June is due at 9:30 a.m. ET

U.S. nonfarm payrolls rose 223,000 in June, the Labor Department said on Thursday. With 432,000 people dropping out of the labor force, U.S. unemployment rate fell two-tenths of a percentage point to 5.3 percent, the lowest since April 2008.

by cassandra.garrison7/2/2015 12:57:06 PM

Traders keep bets on December for first Fed rate hike

U.S. short-term interest-rate futures contracts rose on Thursday as traders stuck to bets the Federal Reserve will raise interest rates just once this year, in December, after a weaker-than-expected government report on U.S. jobs.

Futures contracts show that traders still see December as the first Fed meeting when a rate hike is more likely than not, based on CME FedWatch, which tracks expectations using its Fed funds futures contracts.

Traders see a 51 percent chance of a December rate hike, down from 57 percent just before the report was published. The report showed U.S. employers added fewer jobs than expected in June and May, and a drop in the unemployment rate reflected an exit of workers from the labor force.

The Fed has kept short-term rates near zero since December 2008.

(Reporting by Ann Saphir)

by cassandra.garrison7/2/2015 12:56:35 PM

U.S. stock futures extended their gains on Thursday after data showed U.S. job growth slowed in June, dampening expectations of an interest rate hike in September.

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